German authorities have moved against a suspected illegal online gambling network after an investigation lasting more than three years. Prosecutors estimate the operation raked in billions of euros in gambling stakes while avoiding the licensing and tax requirements that operators in Germany must adhere to.
German Probe Targets Illegal Gambling Network over $90.1M Tax Loss
Investigators searched 11 properties on September 8, the Frankfurt Public Prosecutor’s Office said. The operation covered sites in Frankfurt, the surrounding Rhine-Main region and Cologne. Over 100 officers took part in the searches.
The investigation concerns five suspects said to have provided online gambling services without the necessary German licenses. Prosecutors say activity started no later than July 2021 and continued into 2026.
Investigators say that customers placed bets of around EUR5.86 billion ($6.8 billion) between July 2021 and the end of 2023. Authorities have also opened proceedings over suspected tax evasion related to the gambling business.
The alleged tax loss for 2024 alone is estimated to be EUR77.6 million ($90.1 million). The prosecutors believe that taxes on the gambling operations were paid only in part or not at all.
Authorities also worked to seize assets thought to be tied to the case. An asset restraint order of about EUR82 million ($95.2 million) was executed during the operation. Several expensive vehicles were seized, and multiple bank accounts were frozen.
The action resulted in one arrest warrant being executed. The authorities have not released any further personal details about the prime suspect.
German Industry Groups Demand Changes to Combat Illegal Market
The case has also sparked renewed discussion over the extent of Germany’s illegal gambling industry. The German Sports Betting Association (DSWV) said the investigation showed illegal gambling remains a big problem. The group said enforcement should be accompanied by efforts to strengthen and make the regulated market more attractive to consumers.
The DSWV also called for a new assessment of the official black market figures in Germany. According to the Joint Gambling Authority of the Federal States (GGL), in 2024 23 % of gross gambling revenue was generated by operators without a license. Nielsen research put the figure much higher at around 56%, which was quoted by industry figures.
The German Online Casino Association (DOCV) also drew attention to the discrepancy between the various estimates. Board member Kevin O’Neal noted that the findings raised questions about whether the current regulatory framework captured the scope of unlicensed gambling.
The DOCV is advocating for a single national licensing regime for online casino products. The regulatory landscape today is different for each type of gambling product, with online casino games having a more fragmented licensing structure.
Both industry groups want tougher measures against operators who serve German customers without permission. The calls are being made as Germany is on track to finish its review of the Interstate Treaty on Gambling by the end of 2026. The review could result in changes to the regulation of online gambling and how authorities deal with the country’s unlicensed market.